9.68 USD
+0.07 (+0.73%)
9.68 USD
0 (0%)
Overall ERIC gets a fundamental rating of 6 out of 10. We evaluated ERIC against 48 industry peers in the Communications Equipment industry. ERIC scores excellent on profitability, but there are some minor concerns on its financial health. ERIC scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally ERIC also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ERIC was profitable.
In the past year ERIC had a positive cash flow from operations.
ERIC had positive earnings in 4 of the past 5 years.
ERIC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ERIC has a better Return On Assets (8.72%) than 85.42% of its industry peers.
The Return On Equity of ERIC (24.01%) is better than 89.58% of its industry peers.
ERIC has a better Return On Invested Capital (15.20%) than 89.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ERIC is in line with the industry average of 12.35%.
The 3 year average ROIC (10.59%) for ERIC is below the current ROIC(15.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 24.01% | ||
| ROIC | 15.2% |
ROA(3y)-1.18%
ROA(5y)2.06%
ROE(3y)-4.3%
ROE(5y)5.63%
ROIC(3y)10.59%
ROIC(5y)12.19%
1.3 Margins
The Profit Margin of ERIC (10.26%) is better than 81.25% of its industry peers.
ERIC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 12.97%, ERIC belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
ERIC's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 47.62%, ERIC is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
ERIC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.97% | ||
| PM (TTM) | 10.26% | ||
| GM | 47.62% |
OM growth 3Y-12.66%
OM growth 5Y14.26%
PM growth 3Y-90.62%
PM growth 5Y-61.69%
GM growth 3Y1.11%
GM growth 5Y3.7%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ERIC is creating value.
ERIC has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ERIC has been increased compared to 5 years ago.
The debt/assets ratio for ERIC has been reduced compared to a year ago.
2.2 Solvency
ERIC has a debt to FCF ratio of 1.45. This is a very positive value and a sign of high solvency as it would only need 1.45 years to pay back of all of its debts.
The Debt to FCF ratio of ERIC (1.45) is better than 70.83% of its industry peers.
A Debt/Equity ratio of 0.35 indicates that ERIC is not too dependend on debt financing.
ERIC's Debt to Equity ratio of 0.35 is on the low side compared to the rest of the industry. ERIC is outperformed by 68.75% of its industry peers.
Although ERIC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.45 | ||
| Altman-Z | N/A |
ROIC/WACC1.89
WACC8.06%
2.3 Liquidity
A Current Ratio of 1.17 indicates that ERIC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.17, ERIC is doing worse than 85.42% of the companies in the same industry.
ERIC has a Quick Ratio of 1.17. This is a bad value and indicates that ERIC is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of ERIC (0.94) is worse than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 541.12% over the past year.
Measured over the past years, ERIC shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.01% on average per year.
ERIC shows a decrease in Revenue. In the last year, the revenue decreased by -2.65%.
The Revenue has been growing slightly by 1.76% on average over the past years.
EPS 1Y (TTM)541.12%
EPS 3Y-38.27%
EPS 5Y-17.01%
EPS Q2Q%113.66%
Revenue 1Y (TTM)-2.65%
Revenue growth 3Y2.19%
Revenue growth 5Y1.76%
Sales Q2Q%-8.99%
3.2 Future
Based on estimates for the next years, ERIC will show a very strong growth in Earnings Per Share. The EPS will grow by 30.35% on average per year.
ERIC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.85% yearly.
EPS Next Y353.22%
EPS Next 2Y97.02%
EPS Next 3Y58.69%
EPS Next 5Y30.35%
Revenue Next Year-5.08%
Revenue Next 2Y-2.74%
Revenue Next 3Y-1.17%
Revenue Next 5Y-0.85%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.64, the valuation of ERIC can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of ERIC indicates a rather cheap valuation: ERIC is cheaper than 95.83% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of ERIC to the average of the S&P500 Index (26.39), we can say ERIC is valued rather cheaply.
A Price/Forward Earnings ratio of 13.56 indicates a correct valuation of ERIC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ERIC indicates a rather cheap valuation: ERIC is cheaper than 83.33% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.84. ERIC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 13.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ERIC indicates a rather cheap valuation: ERIC is cheaper than 91.67% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, ERIC is valued cheaper than 87.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.88 | ||
| EV/EBITDA | 6.98 |
4.3 Compensation for Growth
ERIC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ERIC has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ERIC's earnings are expected to grow with 58.69% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y97.02%
EPS Next 3Y58.69%
5. Dividend
5.1 Amount
ERIC has a Yearly Dividend Yield of 3.16%. Purely for dividend investing, there may be better candidates out there.
ERIC's Dividend Yield is rather good when compared to the industry average which is at 0.77. ERIC pays more dividend than 89.58% of the companies in the same industry.
ERIC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
5.2 History
The dividend of ERIC is nicely growing with an annual growth rate of 22.02%!
ERIC has paid a dividend for at least 10 years, which is a reliable track record.
ERIC has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)22.02%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
37.84% of the earnings are spent on dividend by ERIC. This is a low number and sustainable payout ratio.
ERIC's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP37.84%
EPS Next 2Y97.02%
EPS Next 3Y58.69%
9.68
+0.07 (+0.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners54.97%
Inst Owner Change-18.64%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap32.27B
Revenue(TTM)240.31B
Net Income(TTM)24.64B
Analysts56.55
Price Target9.21 (-4.86%)
Short Float %1.1%
Short Ratio2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
Yearly Dividend0.29
Dividend Growth(5Y)22.02%
DP37.84%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)49.11%
Min EPS beat(2)20.62%
Max EPS beat(2)77.6%
EPS beat(4)3
Avg EPS beat(4)34.33%
Min EPS beat(4)-10.72%
Max EPS beat(4)77.6%
EPS beat(8)6
Avg EPS beat(8)-29.88%
EPS beat(12)9
Avg EPS beat(12)-11.71%
EPS beat(16)10
Avg EPS beat(16)-8.77%
Revenue beat(2)0
Avg Revenue beat(2)-3.63%
Min Revenue beat(2)-6.39%
Max Revenue beat(2)-0.88%
Revenue beat(4)0
Avg Revenue beat(4)-2.46%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)-0.45%
Revenue beat(8)1
Avg Revenue beat(8)-2.31%
Revenue beat(12)3
Avg Revenue beat(12)-1.5%
Revenue beat(16)7
Avg Revenue beat(16)-0.68%
PT rev (1m)0.87%
PT rev (3m)7.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)14.05%
EPS NY rev (1m)1.11%
EPS NY rev (3m)20.56%
Revenue NQ rev (1m)-1.04%
Revenue NQ rev (3m)-1.51%
Revenue NY rev (1m)-0.2%
Revenue NY rev (3m)-1.67%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.64 | ||
| Fwd PE | 13.56 | ||
| P/S | 1.25 | ||
| P/FCF | 9.88 | ||
| P/OCF | 8.85 | ||
| P/B | 2.93 | ||
| P/tB | 6.7 | ||
| EV/EBITDA | 6.98 |
EPS(TTM)0.91
EY9.4%
EPS(NY)0.71
Fwd EY7.38%
FCF(TTM)0.98
FCFY10.12%
OCF(TTM)1.09
OCFY11.3%
SpS7.74
BVpS3.31
TBVpS1.44
PEG (NY)0.03
PEG (5Y)N/A
Graham Number8.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.72% | ||
| ROE | 24.01% | ||
| ROCE | 19.24% | ||
| ROIC | 15.2% | ||
| ROICexc | 22.2% | ||
| ROICexgc | 46.36% | ||
| OM | 12.97% | ||
| PM (TTM) | 10.26% | ||
| GM | 47.62% | ||
| FCFM | 12.65% |
ROA(3y)-1.18%
ROA(5y)2.06%
ROE(3y)-4.3%
ROE(5y)5.63%
ROIC(3y)10.59%
ROIC(5y)12.19%
ROICexc(3y)14.83%
ROICexc(5y)17.86%
ROICexgc(3y)47.09%
ROICexgc(5y)43.4%
ROCE(3y)13.4%
ROCE(5y)15.43%
ROICexgc growth 3Y9.12%
ROICexgc growth 5Y7.91%
ROICexc growth 3Y-8.84%
ROICexc growth 5Y4.9%
OM growth 3Y-12.66%
OM growth 5Y14.26%
PM growth 3Y-90.62%
PM growth 5Y-61.69%
GM growth 3Y1.11%
GM growth 5Y3.7%
F-Score6
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.35 | ||
| Debt/FCF | 1.45 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 36.83% | ||
| Cap/Sales | 1.48% | ||
| Interest Coverage | 13.31 | ||
| Cash Conversion | 83.18% | ||
| Profit Quality | 123.37% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | N/A |
F-Score6
WACC8.06%
ROIC/WACC1.89
Cap/Depr(3y)47.04%
Cap/Depr(5y)51.35%
Cap/Sales(3y)1.94%
Cap/Sales(5y)2.02%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)541.12%
EPS 3Y-38.27%
EPS 5Y-17.01%
EPS Q2Q%113.66%
EPS Next Y353.22%
EPS Next 2Y97.02%
EPS Next 3Y58.69%
EPS Next 5Y30.35%
Revenue 1Y (TTM)-2.65%
Revenue growth 3Y2.19%
Revenue growth 5Y1.76%
Sales Q2Q%-8.99%
Revenue Next Year-5.08%
Revenue Next 2Y-2.74%
Revenue Next 3Y-1.17%
Revenue Next 5Y-0.85%
EBIT growth 1Y54.66%
EBIT growth 3Y-10.75%
EBIT growth 5Y16.26%
EBIT Next Year111.11%
EBIT Next 3Y21.86%
EBIT Next 5Y15.14%
FCF growth 1Y392.6%
FCF growth 3Y7.36%
FCF growth 5Y33.08%
OCF growth 1Y169.74%
OCF growth 3Y5.8%
OCF growth 5Y22.35%
ERICSSON (LM) TEL-SP ADR / ERIC FAQ
What is the fundamental rating for ERIC stock?
ChartMill assigns a fundamental rating of 6 / 10 to ERIC.
Can you provide the valuation status for ERICSSON (LM) TEL-SP ADR?
ChartMill assigns a valuation rating of 9 / 10 to ERICSSON (LM) TEL-SP ADR (ERIC). This can be considered as Undervalued.
How profitable is ERICSSON (LM) TEL-SP ADR (ERIC) stock?
ERICSSON (LM) TEL-SP ADR (ERIC) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for ERIC stock?
The Price/Earnings (PE) ratio for ERICSSON (LM) TEL-SP ADR (ERIC) is 10.64 and the Price/Book (PB) ratio is 2.93.
Can you provide the financial health for ERIC stock?
The financial health rating of ERICSSON (LM) TEL-SP ADR (ERIC) is 4 / 10.